Daily Chemical Reactions

Optimistic 2H20 Views Keep Street Expectations Elevated; US PGP Jumps (Again)
July 23, 2020
Commodities Mentioned:
Brent Crude, Natural Gas, Naphtha, Ethane, Ethylene, Propylene, Polyethylene, Polyurethanes, Polycarbonates, MTBE
Companies Mentioned:
Dow, Covestro, Croda, Sika, Repsol, PTT Group, LyondellBasell, CP Chem, Ineos, Total, Braskem, Huntsman, BASF, Eastman, Axalta, PPG, Johnson Matthey, PTTGCA, Chevron

Daily Chemical Reaction

 

Optimistic 2H20 Views Keep Street Expectations Elevated; US PGP Jumps (Again); Other Items

Key Points:

  • We comment on multiple 2Q20 sector reports (e.g. Dow, Covestro, Croda, Sika and Repsol), discuss Dow and Covestro volume trends, and examine 2H outlooks from multiple chemical producers. Expectations remain optimistic.
  • US polymer grade propylene (PGP) spot values reflect strength mid-week, and we flag the WoW downtick in US refinery operating rates as supportive. PGP spot (& contract) strength poses as a 2H20 margin headwind for buyers.
  • Other items today range from the PTTGCA move to add NGL storage in the NE US, a move upwards in the Asia naphtha crack as demand returns, and US MTBE moving to Mexico by rail due to other logistical issues.

See PDF below for all charts

Contact us to subscribe to our services and gain access to full content.

Request A Free Trial